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Negotiating with creditors

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Last Updated: 28/10/2024

Involve us early

One of the greatest fears for directors is how creditors will respond to the news that they will not be paid on time, or maybe not at all.  Big organisations often have seemingly inflexible policies while smaller creditors can react emotionally to the situation.  It may be the company can be saved and creditors eventually paid in full if it is possible to buy some time. This is where having an insolvency practitioner involved as early as possible can be invaluable.

We can guide you through the realities. If necessary we can deal with your creditors directly taking the heat off you and creditors in turn can be reassured that the distressed business is receiving proper advice.

How can we help?

  • Act as intermediary, either advising you in the background or dealing directly with creditors and spelling out the situation in legal and commercial terms.
  • Often the biggest consideration is negotiating with HMRC on time to pay, requests for security deposits or if you have received an Accelerated Payment Notice (APN).
  • Setting up consignment stock arrangements.
  • Negotiating retention of title claims.
  • Advising on taking security over assets of the business.
  • Explaining the nuances of any formal insolvency procedure, such as company voluntary arrangement (“CVA”) proposals.

Above all we can introduce some certainty into a fraught situation. Whilst this might be your first time dealing with creditors as a director we have faced similar circumstances many times over on behalf of our clients and we know exactly what to do for the best. 

Tony Harrison

Director

Tony helps underperforming businesses using a professional and understanding approach and will listen to concerns on a without charge or commitment (on a confidential) basis and then advises on the available solutions.

With over 19 years of experience at McTear Williams & Wood Tony understands the challenges facing directors and managements of struggling companies and can provide assistance with first hand experience. His strengths lie in an ability to rapidly understand situations and react to turn them to an advantage.

Tony advocates an early confidential meeting as experience tells us that recovery options are often eroded over time.

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